EU Banks Launch Euro-Backed Stablecoin, Aiming for Dominance in Digital Finance

A consortium of nine European banks is set to launch a euro-backed stablecoin by 2026, aiming to challenge the dominance of dollar-pegged tokens in the digital finance market. This initiative, overseen by the Dutch Central Bank, comes as the European Central Bank prepares to roll out its own digital euro by 2029. The move represents a significant step towards greater European financial autonomy and innovation in the field of stablecoins. While initial market reaction is muted, experts anticipate this new development could propel the adoption of euro-denominated tokens, currently accounting for less than 1% of the global stablecoin market.